Initial hearing held on bill legalizing online fantasy sports in Montana – NBC Montana

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by Josh Margolis
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HELENA, Mont. — An initial hearing took place in the Montana legislature on Tuesday on a bill that would legalize internet fantasy sports contests in Montana.
Although Montana legalized sports betting in 2019, it is one of just six states that does not allow online fantasy sports contests, a market which is currently dominated by FanDuel and DraftKings and lets you choose a selection of professional athletes to compete for the highest score online against others over a specified period of time.
Senate Bill 551 bill sets a minimum age of 18 for participants, a 6.75% tax, a $5,000 fee for licensees, and provides the Montana Department of Justice with regulating powers.
The lead sponsor says online fantasy sports are a game of skill, not gambling.
“If you’ve played fantasy football before, that’s kind of what we’re talking about here. I’m really into fantasy baseball and will talk more about my dynasty teams way more than anyone cares about,” said State Sen. Forrest Mandeville (R-Columbus) at the Senate Business, Labor, and Economic Affairs hearing.
“Frankly, I think people are afraid this is going to cut into their business, they are being protectionists,” Mandeville added during his closing. “And I mean that with all due respect to my friends in the Tavern Association and gaming community. This is not going to compete with their business. This is distinct.”
Opponents disagree and worry about the impact on local bars with sports wagering machines, as well as the possibility of people becoming addicted to fantasy wagering online.
“Montana public policy in gaming is to ensure that there are proper controls in the gaming environment. If we open up online gaming in Montana, we are going to lose the ability to control and it will have unintended consequences,” said Shauna Helfert, executive director of the Montana Gaming Industry Association. “The dangers associated with online gambling are multi-faceted and deeply concerning.”
“If you created a regulated site, people are still going to get scammed. And I think what you’re going to do is normalize gambling on your phone,” said John Iverson of the Montana Tavern Association when asked by the vice-chair State Sen. Jeremy Trebas (R-Great Falls) why Montana shouldn’t allow the online fantasy sports industry to be legalized and regulated. “We’re going to normalize that you’re going to gamble on this thing if we have those regulated sites.”
“With all due respect, I think it’s already normalized. So, I think we already have the problem. So again, why wouldn’t we want to create a legitimate site with maybe a certificate or something on the website that says this is legitimate, this is the state of Montana. And by the way, we can create some tax revenue from it,” responded Trebas.
Mandeville ended the hearing with a forceful closing, accusing the opponents of fearmongering, and calling for common sense to prevail.
“I’m getting sick and tired, which you can probably tell, of some of the fearmongering we get from these opponents every single time we bring anything to open up a little bit of, whether you want to call it gaming or being able to put some money on sports,” said Mandeville.
A fiscal note has been requested but has not yet been published. The Gambling Control Division for the state of Montana estimates it will cause a $2 million initial expense but will provide revenue of about $27,000 a year.
No action was taken on the bill on Tuesday, and NBC Montana will continue to keep you updated on its progress.

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